Union questions Arcelor Mittal’s refusal to meet

Approximately 644 workers were terminated after the Point Lisas Industrial Estate based Company announced on March 11 that a combination of local and international challenges had resulted in a decision to close the business.

However addressing a news conference at the Union’s California Village headquarters yesterday, Henry said the Union had not “sat on its hands” but had worked to source investors to purchase the Company and assume liability for its debts.

“This Union has not asked for the Government to just intervene, we would have taken our own destiny into our hands through our affiliates internationally and have acquired investors who are interested in taking over the plant, but we have been hindered by this Company and its attitude,” Henry said. He continued: “The Union would have outlined the advantageous factors to the investors as it relates to the anticipated turnaround of the steel market in the near future and the resources that continue to be available for continuity of the plant.” “This itemised argument has now attracted, not only one, but two highly interested and motivated investors and a letter was sent to the Company indicating such and a request was made for a meeting,” he said, adding, “I have the letter here where the Union would have written to the Company asking for a meeting to engage in discussions as it relates to the investors acquiring the plant.” “The Union succeeded in getting a response from the Company but the disbelief and absurdity in the articulation of the responder is bewildering to the Union, in that the Company, through its agent, refuses to engage in discussions with the Union and the investors,” he said and also produced that letter where the Company “responded to us indicating no interest in having discussions as it relates to an investor purchasing the plant or taking over the plant.” “The Union’s greatest fear is now being realised as per this response by the Company, in that the Union believes that the intention of the Company is to dispose of their debt, liabilities being owed to the workforce and others by declaring insolvency. The Union also believes that following this, Arcelor- Mittal International will then return during the process of liquidation and purchase the plant for a fraction of the value, devoid of any financial obligation to the workforce,” Henry said.

Henry reminded reporters of a statement by ArcelorMittal to sell the plant for one dollar but had now reneged on that offer as soon as potential investors had been located.

“You must remember that they made this big statement that they want to sell the plant for a dollar, how all of a sudden today they not willing to sell the plant again? Here it is we have investors willing to take over the debt, where was that big statement? Where did it come from? Is it still on the drawing board? But the discussion must be with the Government, inclusive of the Company and the investors,” he said. He said the Union was once again requesting Government’s intervention to address the issue. And while he declined to identify the two potential investors, citing confidentiality issues, Henry said one investor was a local company with an international partner while the second investor was an international company.

“They are willing to acquire the plant with whatever debt that is there so the opportunity is tremendous, it is real,” he said.